Can a Bill of Lading Be Issued Outside the Country of Shipment?

In documentary credit practice, a recurring question is whether a bill of lading must be issued at the port of loading or even in the country of shipment. With today’s centralized carrier systems and documentation hubs, the place of issuance may be far away from the actual port. But does this matter under UCP 600? Let’s see.

___

QUESTION

Hi,

The LC states: Port of loading – Colombo, Sri Lanka.

The presented bill of lading is issued in Singapore mentioning “Singapore as at Colombo,” and it shows Colombo as the port of loading.

Can a bank raise a discrepancy?

As always, obliged for your cooperation.

Siddhartha Sharma

_____________

ANSWER

Dear Sharma,

No discrepancy.

UCP 600 does not require a bill of lading to be issued at the port of loading or within the country of shipment. In practice, many carriers issue bills of lading through global documentation systems located anywhere in the world.

What matters under ISBP 821, paragraph E6(e) is that the named port of loading, as required by the credit, appears in the port of loading field on the bill of lading. Here, Colombo is correctly stated as the port of loading.

Therefore, the fact that the bill of lading was issued in Singapore — even with the wording “Singapore as at Colombo” — does not create a discrepancy. The presentation is acceptable.

Best regards,

Mr. Old Man